Ackman, Valeant partnering in bid to acquire Botox maker Allergan

Colleen Delsack of Virginia receives a Botox injection. Valeant Pharmaceuticals International Inc. said it hopes to acquire Botox maker Allergan Inc., which is based in Irvine.

Colleen Delsack of Virginia receives a Botox injection. Valeant Pharmaceuticals International Inc. said it hopes to acquire Botox maker Allergan Inc., which is based in Irvine. (Jacquelyn Martin / Associated Press)

Stuart Pfeifer

Activist investor Bill Ackman is partnering with Valeant Pharmaceuticals in an attempt to buy Orange County pharmaceutical company Allergan Inc., which sells the popular wrinkle treatment Botox.

Ackman’s Pershing Square Capital Management said in a public filing on Monday that it was partnering with Valeant to acquire shares of Allergan. Pershing Square and Valeant agreed to the partnership on Feb. 25, Ackman said in a filing with the Securities and Exchange Commission.

Valeant said in a statement that it believed a partnership with Allergan would be best for both companies.

“We firmly believe that combining Valeant and Allergan would create an unrivaled platform for growth and value creation in healthcare, and we look forward to finalizing and announcing the terms of our proposal shortly,” Valeant said in the statement.

Ackman, in a disclosure filed Monday with the Securities and Exchange Commission, said Pershing Square already owns nearly 10% of Allergan’s shares.

Ackman said in the filing that Valeant has agreed to “consult with Pershing Square before making any material decisions relating to a business combination” with Allergan.

Cathy Taylor, a spokeswoman for Allergan, declined to comment. Ackman did not immediately respond to a request for comment.

Allergan, headquartered in Irvine, is one of the largest companies based in Orange County and has about 11,400 employees worldwide. The company reported $6.3 billion in revenue in 2013.

Valeant, based in Montreal, has 17,200 employees.

Allergan shares gained $8.08, or 6%, to $142. Valeant shares were up $3.96, or 3.2%, to $126.01. Shares of both companies surged in after-hours trading, with Allergan up 12% and Valeant up 10%.